Receive the daily clearing/settlement file from your network or processor in the agreed format (IPM — Interchange Posting and Management — for Mastercard, or BASE II for Visa)
Parse each clearing record and match it to the original authorization using the Retrieval Reference Number (RRN) or System Trace Audit Number (STAN) as the linking key
Identify clearing records without a matching authorization — these represent late presentments or transactions that bypassed authorization (offline transactions, transit, etc.)
Identify authorized transactions without a matching clearing record after the clearing window closes (typically 3–5 days for Mastercard) — these may represent abandoned authorizations that should be voided
Calculate the net settlement amount per issuer BIN by summing cleared amounts, subtracting interchange fees and scheme assessments, and reconciling to the net position
Submit the reconciled settlement position to your sponsor bank or settlement agent by the daily net settlement funding cutoff time
Known gotchas
Settlement files contain clearing amounts which may differ from authorization amounts due to tip adjustments, partial captures, or currency conversion — always reconcile on cleared amounts
Late presentments submitted outside the allowed clearing window (up to 30 days for some transaction types) are subject to chargeback risk — flag and investigate aged pending authorizations
Interchange and scheme fees are netted from the settlement amount before funding; failing to account for these in your settlement model will cause recurring balance discrepancies
Give your agent this knowledge — and 200+ more routes
One MCP install gives any agent live access to the full route map, with trust scores updated by agent consensus:
claude mcp add --transport http waymark https://mcp.waymark.network/mcp